Foremost brewing company in Nigeria, Nigerian Breweries Plc, has released its audited Group Financial Statements for the financial year 2024, recording an unprecedented and impressive revenue of N1.1 trillion.
This represents a massive 81% increase on the N599.6 billion recorded in the corresponding period in 2023.
A further breakdown of the audited results revealed a significant 51% growth in group gross profit from N212.6 billion in 2023 to N320 billion in 2024. The operating profit equally grew significantly by 59% from N44 billion to N70 billion during the period in spite of the challenges of huge increase in input costs.
Speaking on the results, Mr. Hans Essaadi, Managing Director/CEO, Nigerian Breweries Plc said the impressive year-on-year revenue growth was largely driven by strategic pricing initiatives, market expansion, successful innovations, and operational efficiencies.
”Despite macroeconomic headwinds faced by the company, group operating profit surged by 54%, reflecting the success of cost management, process optimization and strong operational performance”, he noted.
He added that the 34% increase in the net finance costs, and the 36% increase in the net loss recorded by the company were driven by the rise in interest rates as well as the impact of the devaluation of the naira. The net loss went up from N106.3 billion in the previous year to N144.9 billion.
According to a statement signed by the Company Secretary/Legal Director, Mr. Uaboi Agbebaku, the company took some bold steps in 2024 to deal with the issues that impacted the net profit and to strengthen its financial position. The Board obtained the support of shareholders for the company’s business recovery plan including a successful Rights Issue.
Agbebaku disclosed further that the bold steps have started to yield positive results with the company demonstrating strong recovery and positive momentum in the last quarter of 2024.
“In Quarter 4, Revenue grew by 89% while operating profit increased by 145%. Notably, net finance costs went down by 75% leading to a return to profitability in the quarter, the first time in two years. The return to a positive net profit position marks a major step in the company’s journey towards long term profitability and financial stability. It also reinforces the effectiveness of ongoing transformation initiatives. The proceeds from the right issues have been utilised to significantly reduce future currency risks and the board remains committed to maintaining the improved financial position,” he said.
While appreciating the shareholders for their support on the Rights issue, he maintained that the company would continue to navigate the challenges of the Nigerian business environment to bring about profitability for the business.
“While the economic landscape continues to evolve, the company remains focused on agility, innovation and operational excellence, ensuring it is well positioned for future opportunities while continuing to navigate the challenges of the Nigerian economy, which is characterized by foreign exchange volatility, limited access to foreign capital, impact of subsidy removal and naira devaluation,” he said.
